Nigerian authorities have recognized cryptocurrency as an asset class

The new law also introduces criminal penalties for digital asset fraud

01.04.2025 - 12:10

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2 min

What’s new? The Nigerian authorities have officially recognized cryptocurrency as a separate asset class. The corresponding changes are outlined in the Investments and Securities Act (ISA) 2025, which was signed by the President of the country, Bola Tinubu. It designates the Securities and Exchange Commission (SEC) as the primary regulator of virtual asset service providers (VASPs).

Material by Bitcoincom

What else is known? The law also introduces liability for the organization and promotion of cryptocurrency pyramid schemes, including fines and imprisonment.

The SEC explained that the ISA effectively repeals the Investments and Securities Act No. 29 of 2007. The new law gives the commission the power to better promote innovation and investor protection, as well as position Nigeria as a competitive destination for local and foreign investment.

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In February, the Nigerian authorities sued the largest crypto exchange Binance with a demand to pay a fine of $81,5 billion in connection with tax evasion in 2022-2023.

A year earlier, local authorities arrested Binance’s top manager and US citizen Tigran Gambaryan in connection with the case. The eight-month detention seriously affected Gambaryan’s health, in connection with which congressmen appealed to President Biden and Secretary of State Blinken to facilitate his release.

After his release, the media reported that Gambaryan could take a senior position in the new Trump administration.

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